PPAP Automotive Limited Approves Merger of Avinya Batteries and Slump Sale of Tooling Division

PPAP Automotive Limited Approves Merger of Avinya Batteries and Slump Sale of Tooling Division​

PPAP Automotive Limited announced major strategic corporate updates, including the approval of a merger with its wholly owned subsidiary, Avinya Batteries Limited, and the proposed slump sale of its Tooling Business to Meraki Precision Tool Engineering Limited. The board also recommended a final dividend for the financial year ended March 31, 2026, following the approval of the audited financial results.

Financial Performance and Dividend Recommendation​

The Board of Directors approved the audited financial results, both standalone and consolidated, for the quarter and year ending March 31, 2026. M/s TR Chadha & Co. LLP, Statutory Auditors, issued an audit report dated May 11, 2026, providing an unmodified opinion on the audited financial results for the financial year ended March 31, 2026.

The Board also recommended a final dividend of Rs 1.5 per equity share of Rs. 10 each, which is subject to approval by the shareholders at the ensuing Annual General Meeting.

Based on the standalone financial statements, the reported Net Profit for the year ended March 31, 2026, was Rs 3,343.48 lakhs, with total comprehensive income recorded at Rs 3,388.34 lakhs. The consolidated financial results showed a Net Profit for the year ended March 31, 2026, of Rs 431,933 lakhs.

The annual standalone financial results, showing key figures for the year ended March 31, 2026, are presented below:

Major Corporate Actions: Merger and Slump Sale​

Two key corporate transactions received board approval:

1. Merger of Avinya Batteries Limited (WOS)
The Board approved a scheme of merger for Avinya Batteries Limited, the company's wholly owned subsidiary, into PPAP Automotive Limited. Avinya Batteries Limited is engaged in the manufacturing of high-quality lithium-ion battery packs, including Pouch Cell, Cylindrical Cell, and Prismatic Cell variants.

The merger is expected to generate synergies through the operational and financial consolidation of both businesses, rationalize administrative and operational costs, and allow for better coordination of activities within a single consolidated entity.

2. Slump Sale of Tooling Business
The Company approved the proposal for the sale of its Tooling Business via slump sale to Meraki Precision Tool Engineering Limited, a wholly owned subsidiary.

The Tooling Business, which generated a revenue of Rs 22.5 Crores for FY 2025-2026 (4.2% of the Company's total revenue of Rs 536.29 Crores), is being sold to establish a scalable platform for expansion of tooling capabilities and customer base. The consideration for this sale will be determined based on the net worth of the business undertaking and will be discharged through the issuance of equity shares by Meraki Precision Tool Engineering Limited.

Management and Operations Updates​

The Board also approved the reappointment of Mr. Ajay Kumar Jain, Chairman and Managing Director, for a term of three years, effective November 1, 2026, to October 31, 2029.

Furthermore, the nomination and remuneration committee approved the allotment of 37,917 equity shares of face value Rs. 10 each to eligible employees under the PPAP Automotive Limited Employee Stock Option Plan 2022.

Other Key Approvals​

The Board Meeting also approved several administrative actions, including the allotment of 37,917 equity shares of face value Rs. 10 each under the Employee Stock Option Plan 2022.

The company's overall financial structure includes key asset classes in the current reporting period, notably Inventories at Rs 7,800.07 lakhs and Total Assets at Rs 74,561.37 lakhs.

The board meeting commenced at 11:00 A.M. and concluded at 4:45 P.M.

PPAP Stock Price Movement​

Today, PPAP Automotive Limited shares edged higher to close at ₹240.15, gaining 3.77%. The stock saw strong participation today, with total traded volume hitting 174,380 shares.